July Market Update | Simon Tremain

Date: 14th Jul 2021

 As you tidy up the home when it is at its coldest it’s a great time of year to think about making the move for summer.

The median house price in Hawke’s Bay has increased to $701,000 in June 2021 from $560,900 in June 2020, which is a 25.4% jump. However, REINZ stats show the second consecutive month of declining median house prices. The numbers are significant month on month with May’s median at $730,000. For much of the country, the medians are on the rise, and buyer confidence is coming back but we are yet to see that trend in Hawke’s Bay due mainly to the huge increases we have had.

There is a lot of chat about when the Reserve Bank will inevitably raise interest rates. Earlier predictions of late 2022 are changing, with pundits tipping we will see the first interest rate rise before the end of this year. How this will affect the property market remains to be seen but any interest rate rise will always impact those with high debt levels which is becoming the norm.

As we wait for the notification we can finally get our COVID vaccine, other parts of the world are opening up to normal levels. This is a positive sign and gives hope to our non-Kiwi family members we haven’t seen in over a year, but it is going to put New Zealand business on the back foot in the coming months. A large wave of Kiwis is likely to head across the Tasman very soon which will be a loss for our economy long term. 

Poor England loses again at the last hurdle in the European Cup Final, which will have many POMEs crying in their soup. Enjoy your week.